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ResN writes,

By the way, Pfau denied having ever referred in any way to fees or expenses in any of his articles or studies. He flat out denied ever suggesting that 1% was a reasonable amount for most folks, and that he included the 1% in his calculations for his new and improved SWR.


Here's the subject report, authored by Dr. Pfau and published by Morningstar no less, where he assumes a 1% fee in his retirement withdrawal study. (See Page 9)

Each scenario in the analysis is based on a 10,000-run Monte Carlo simulation. Taxes and Required Minimum Distributions (RMDs) from the portfolio are ignored. The analysis assumes a 1.0% fee, or negative alpha, that is deducted from the portfolio value annually. This fee is included to account for unavoidable retirement portfolio expenses paid by the investor (e.g., mutual fund fees, advisor fees, account fees, etc.) for investment management.


It seems we can now add "documented history as a liar" to his CV.

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